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2014-2015 2014-2015 Best Practice Cases in IP Protection, Model Cases Harmonizing Administrative and Judicial IP Enforcement and Special Contribution Cases ·2015 6 17 Beijing·June 17 2015 QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Page 1: mofcom.gov.cnimages.mofcom.gov.cn/qbpc.caefi/201509/20150924095407272.pdf · 2014-2015 ˘ ˇˆ˙ 2014-2015 Best Practice Cases in IP Protection, Model Cases Harmonizing Administrative

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Page 2: mofcom.gov.cnimages.mofcom.gov.cn/qbpc.caefi/201509/20150924095407272.pdf · 2014-2015 ˘ ˇˆ˙ 2014-2015 Best Practice Cases in IP Protection, Model Cases Harmonizing Administrative

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Page 3: mofcom.gov.cnimages.mofcom.gov.cn/qbpc.caefi/201509/20150924095407272.pdf · 2014-2015 ˘ ˇˆ˙ 2014-2015 Best Practice Cases in IP Protection, Model Cases Harmonizing Administrative

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Page 4: mofcom.gov.cnimages.mofcom.gov.cn/qbpc.caefi/201509/20150924095407272.pdf · 2014-2015 ˘ ˇˆ˙ 2014-2015 Best Practice Cases in IP Protection, Model Cases Harmonizing Administrative

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Case Description

Shenzhen Zhilian Communication Technology Co., Ltd (Zhilian) was raided by Shenzhen Nanshan District Public Security Bureau on August 28th, 2013 on complaint of counterfeiting “Honeywell” and “ADEMCO” branded security products. The PSB seized a large number of counterfeiting products and fake trademark labels on site. In its further investigation, the PSB found that Zhilian had sold out the counterfeiting “Honeywell” and “ADEMCO” ��������� ������������������������������� �� ����������������������������!���" �#$�����indictment against Zhilian and its main responsible persons, Mr. Liu Genwu and Mr. Huang Yong charged with crime of counterfeiting the registered trademark. Shenzhen Nanshan District Court issued its verdict on September 2014 and found Zhilian and the defendants Mr. Liu and Mr. Huang guilty. The defendants appealed to Shenzhen %����&�� ���"������������������������ �$���'��*&���������&+��/���9�/:�

Recommendation Reasons

1. The main boards used in the defendant’ products were genuine, but other components, including the transformers, panels, packaging and labels were ordered and assembled by the defendants without Honeywell’s authorization. The judicial organs correctly found the products to be counterfeits as a whole under law.

2. The judicial organs made a thorough investigation to collect comprehensive and solid evidence for criminal conviction which will also help the brand owner to pursue civil liabilities of all the involved infringers including the relevant parties who supplied all the counterfeiting components, packaging and labels to the defendants.

3. The criminal penalty is severe and appropriate.4. The counterfeits involved in this case are security products which are closely related to people’s property

and life safety. The case was widely reported by social media such as PR Newswire, Chain Security Industry Net, and HC.com.

������

The Shenzhen Intermediate People’s Court’s Final Judgment (No. 2014-64) ruled that:R9<�����������=� � ���������*� ��#����&& �� �*�� &������������ � �*�����$������/������>R9 The defendant Mr. Liu Genwu was found guilty of committing crime of counterfeiting and was sentence to

3 years in jail (the jail sentence was mitigated for half a year compared with the penalty ruled down by the court in $�� ������?�����$������������>

R9 The defendant Mr. Huang Yong was found guilty of committing crime of counterfeit and was sentence to 3 #��� �'� ������$������@������

Shenzhen Zhilian Communication Technology Co., Ltd Selling Goods with Counterfeit Registered Trademark of Honeywell

Nominated Agency: Guangdong Shenzhen Nanshan District Public Security Bureau, Guangdong Shenzhen Nanshan District People’s

Procuratorate, Guangdong Shenzhen Nanshan District People’s Court, Guangdong Shenzhen Intermediate

People’s Court

Nominating Member Company: HONEYWELL INTERNATIONAL INC.

11��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Case Description

In 2012.3 and 2013.10, during the sweeping raids made by P&G and Unilever against fake cosmetic products in Yunnan retail market, it is found that the counterfeits seized in 132 stores from over 10 areas were all from the same criminal gang. The gang was led by the couple Wang and Wang her husband, selling counterfeit famous cosmetic products in different cities and counties of Yunnan Province for long. Then Beiersdorf, Colgate, Hawley & Hazel, Johnson & Johnson, P&G and Unilever made joint efforts for the combat. After nearly 2 years’ investigation, ��$����#$X������� & ���*��*��� ���*����� �������[�

At the end of 2014.3, Kunming ECID made sudden attack against the 2 warehouses and the cooperated freight station, and seized 8,602 cartons of fake products respectively from Beiersdorf, Colgate, Hawley & Hazel, Johnson & Johnson, P&G and Unilever, with the seizure value reaching RMB 1,435,620, and successfully arrested the principals Wang and her husband. In 2014.10.8, Kunming People’s Court Guandu Branch made the first ���������]#���� &�� ��&������^��*���*������ �����������#������������>���@#���� &�� ��&���for Wang’s husband, with 4 years on probation, and the penalty of RMB 800,000.

And then Wang appealed to the higher court. On Jan.20, 2015, Kunming Medium People’s Court made the $������� ������'�����������������$�&����� * ���'��*&����

On Feb.3, 2015, some representatives from QBPC PC IWG visited Kunming ECID for the gratitude and further communicated to build up long-term IPR protection mechanism in the long run.

Recommendation Reasons

1. The principals of the case got severe punishment with long imprisonment and huge penalty, which is rare in the IP judicial protection practice for personal care products. The principal Wang was sentenced for 5 years’ imprisonment, together with the penalty of RMB 800,000.

2. The counterfeits covered over ten cities and counties, with over one hundred retail stores interfered, the huge network brought severe situation and the bad impact to the society. The destruction of the criminal gang greatly cleared the cosmetic products’ market in Yunnan Province, meanwhile, it also gave the great attack against the counterfeiters in southwest area.

3. The case clues were from the separate retail stores, but the IP owners still paid high attention and ��&+ �����&�[�'� ������������������� ���� *�� ������$����#�����#���� ������*��� & ���������[across regions, which is a typical in anti-counterfeiting in the circulation industry.

4. The communication and cooperation format between companies and the government should be recognized. During the whole course of the case disposal, QBPC PC IWG members communicated a lot in time with the law enforcement officers, and established the good foundation for the long-term cooperation mechanism between QBPC and Kunming ECID, enhanced the IPR protection work in the southwest area.

Results

_�_�����9�/:�`��& �*�������"����q�����������&������$����������x�������^��*��������to the higher court. On Jan.20, 2015, Kunming Medium People’s Court made the verdict to reject the appeal and ��$�&����� * ���'��*&����<��������� �+����{

Wang was sentenced for 5 years’ imprisonment, together with the penalty of RMB 800,000, for the crime of selling counterfeit registered trademark products.

Wang’s husband was sentenced for 3 years’ imprisonment, with 4 years on probation, and the penalty of RMB 800,000, for the crime of selling counterfeit registered trademark products.

Wang in Kunming Selling Counterfeit Registered Trademark Products Case��& �����x*���#{|�����`��& �*}"%�>|�����`��& �*��������������������q�����������>|�����`��& �*�������"����

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QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Case Description

In late 2013, the right owner discovered several family members led by Tao Shaohe had been producing counterfeit panel switches and sockets bearing the aforesaid trademarks rampantly. the right owner reported to Shanghai branch of the Ministry of Public Security (“PSB”) of PRC in Oct. 2013 and the case was then transferred level by level to Wenzhou PSB according to applicable laws, and the police raided the key parts of the crime chain of counterfeiting registered trademarks with more than 40 police officers and the total seizure quantity of fake products was close to 1,000,000 pieces, which amounted to more than 40,000,000 RMB (the reference is based ������� ����*��� ���������>�������������$� ��������������������& ~$� ���������� &�������5,000,000 RMB according to the evaluation of accredited body).

Recommendation Reasons

/�<�[ �* ������������������ $��������� ������������������+�� ����������������� ����������� �safety and the enormous case value, this case is one of the biggest cases of counterfeiting registered trademarks in low voltage electric industry so far and has great social impact

2. Here, both the Procuratorate and the Court allowed the intellectual property rights holder to authorize �������#�����������$����������������+� �������� ������� �� &���������& �������� �� &���*��status in the judgment.

3. This case involved complicated and numerous legal issues, including the calculating method of illegal +� ���������� ��� ��*����� � �#�� ����� ��������� ��+#� �� ������#� ��� ���� $��� ������ �� ����������&�� ������'�� � �� ���� $��� ������&�*��������&������������* ����������&��[��������� � ��of recognising voluntary surrender, etc.

4. Wenzhou, a city in Zhejiang Province, is a gathering place for the low voltage electric industry where it’s �X���&��#��#����� & ���������������������� ��� ������������������� ��&�����&��� ���raw and accessory materials which are used for counterfeiting famous low voltage electric products.

Results

The defendant Tao Shaohe is guilty of infringing registered trademark and sentenced to 4 years of &�� ��&���� ��$��������������<�����������<������� � *� ��#�� ��� �* �*��* ����������&��[�������������@#����� &�� ��&���� ��$���� ]���������"��$���� ���� !����������� � �*� �����sockets and other accessories which were more than 530,000 pieces in total, etc.

Zhejiang Wenzhou Tao Shaohe etc Counterfeiting & “Clipsal” Registered Trademarks Case”

Nominated Agency: Economic and Technical Development District Branch of Zhejiang Wenzhou Public Security Bureau, Zhejiang

Wenzhou Longwan District People’s Procuratorate, Zhejiang Wenzhou Longwan Disrict People’s Court

Nominating Member Company: Schneider Electric (China) Co., Ltd.

15��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

16

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Case Description

Estee Lauder, Unilever, L’Oreal, and Chanel had located Baiyun District of Guangzhou as the manufacturing source of counterfeit cosmetics by using I2 software to analyze online sales and seizure data of the past years. Eventually, they successfully locked down cosmetics counterfeiting gang led by Mr. Ke and Mr. Hu in Baiyun District. On July 8, 2014, jointly with Guangzhou PSB and Guangzhou FDA, the brand owners launched the raid action against two unregistered cosmetics factories and related warehouses owned by Mr. Ke and Mr. Hu, seizing 400,000 pieces of counterfeit “MAC”, “LAKME”, “HR” and “CHANEL” cosmetic products valued at RMB 26,542,800, a batch of raw materials as well as 4 sets of production machines with successful capture of seven suspects including Mr. Ke and Mr. Hu.

Recommendation Reasons

1. Creative: Using I2 software to analyze the intelligence obtained online as well as in the past investigation / �� ���� �����&+ � �*+������������*� ������������ ��� ��������� �� ���� *�� ���������*��

2. Effective: Taking only 6 months from online investigation, I2 analysis, raid, prosecution till court verdicts ������ %� ����������*�������[���� *���$� ���#��������# �������� �* ����&�� ��� ���� *�� �* �����$�� �*�� & ��������������$X �*�� ��������������� �*������������*�&�����#��������� ���#�

3. Deterrent: The whole counterfeiting gang was rooted out with 7 criminals captured and sentenced. The Court determined “case value” based on market reference price of genuine products, so the seized goods value amounts to 27 million, which is rarely seen in recent years. The criminals were sentenced imprisonments with NO suspension. This has been a severe punishment in counterfeiting cosmetic industry showing the strength of the IP judicial protection.

4. Influential: The counterfeits production by this criminal gang involves multiple brands, large production capacity and world-wide distribution network such as Italy, France, Uruguay and India, which severely jeopardizes the sales of genuine products and brings negative impact on the society and China’s international reputation. The successful raid action strongly cracked down the cosmetics counterfeiting industry and prevented the counterfeits ��� �* ���������&��[���

Results

On January 28, 2015, the 7 criminals were sentenced imprisonment ranging from 7 months and 10 days to 1 #���� ���$�����&���/����������]�����+#�� #��� �� ���������"�����

Case 3 Mr. Ke and Mr. Hu Counterfeiting Goods with Registered Trademarks in Guangdong Province

Nominated Agency: Guangdong Guangzhou PSB, Guangdong Guangzhou FDA, Guangdong Guangzhou Baiyun District People’s Court

Nominating Member Company: Estee Lauder, Unilever, L’Oreal, Chanel

17��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

18

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Case Description

In September, 2011, LUO, BAI and DING established Xiamen Wancools Commerce Co., Ltd. (thereinafter “Wancools”) and started selling Nike products. Since January, 2012, Wancools began selling high-quality ��������� �� [������*��+ ���*�����$������� ��� ��������� ������������ ����� �*�&���&��E-commerce platform runner-such as, “Skomart”, etc. On 16th October, 2013, Xiamen Public Security Bureau Huli Branch (thereinafter ”Xiamen Huli PSB”) inspected the office and warehouse of Wancools located at 766 North 2nd Fanghu Road, Huli District, Xiamen and 280 Shanghu She, Huli District, Xiamen. In total, 13,472 pairs of sports shoes bearing “Nike” trademarks were found on spot. On the same day, Xiamen Huli PSB found 14,718 pairs of “Nike” sports shoes supplied in Skomart warehouse bought from Wancools. The value of the counterfeit commodities was RMB 40,000,000 yuan in total.

Recommendation Reasons

/�<���� �|�����/�����������������*�����&�� *� $�����������<����� �&��� ��� case is the heaviest one among Nike cases. The four defendants were sentenced to 16 years and 6 months (no ���+�� ��?����$������/��������� �������^ ������������� �&����*� ������� & �������������#��a model role in Fujian Province where counterfeiting cases of footwear and apparel are concentrated so that brand ������ ��+�&����������*����$*���*� ���� &��� ������������������#� *�� ��� �*�&����

2. This case is a breakthrough of calculating online sales amounts. Firstly, the electronic transaction records were comprehensively audited by a professional accounting firm in order to figure out the sale volume, profit �&������������[�# ����&�� ����������#������������^������������������ ������$�&��+#�X��� ���#collecting evidences from its downstream buyers. Thirdly, the possibility that the defendant purchased genuine goods was ruled out through a thorough investigation of its supply channels. Finally, the fact that the defendants ���*����$� �������������# ����x< ��� �������� ��� &������ �*��������� �[��� �*�#�^ ���������into consideration, Wancools’ sale of more than RMB 30,000,000 yuan was acknowledged by the court.

@�<����� *� $����� ���� ���&� *� $����}~��&&�����������& �������� %����#�� &�������role in regulating supply channels of some online stores and guiding consumers to recognize the network dealers and warning them to avoid purchasing from unauthorized channels.

This case provides a new way of handling unit crime of intellectual property rights infringement. Through the ������� ������+������$���� ����� ��� �����������������^���������*����$� �������������# ���VAT invoices. Our lawyer pointed out these omitted crimes above during the trial which made a great psychological �����������������������������������$���'��*&������&��X�����

Results

On 22th January of 2015, Wancools is convicted of the crime of knowingly selling counterfeit commodities bearing registered trademarks, and fined RMB 10 million. The defendant LUO and two other defendants are ����������$��#������ X&���� ��� �����$������9& �� �������� ���#�

Nike against LUO for Selling Counterfeit Nike products in Fujian Province

Nominated Agency: Xiamen Public Security Bureau Huli Branch & The People’s Court of Xiamen Siming

Nominating Member Company: Nike Sports (China) Co., Ltd.

19��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

20

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Case Description

In 2012, Philips found there was a gang selling counterfeit Philips shavers via Taobao in Taizhou City of � ��*����� ������ � �$�����&��� ����<��+����������������������� ��������<��+��������������gang always registered new Taobao accounts in short time.

�� � ����������� �����<� !�������� � �*�����������&&�� ������������ ���������� �����PSB, Taizhou PSB Hailing Branch paid great attention to this case and started the investigation in advance. The ���&�������������������������������*��*� ��������#����� �~����� ���� *�� ������$X�����&� �infringers including Mr. Luo, Mr. Xu, Mr. Zhang etc. in Wenzhou City who were responsible for production and the main infringers including Mr. Liu, Mr. Li, Mr. Lu etc. in Taizhou City who were responsible for the sales. The whole distribution channel of the counterfeits became clear.

With the help of Wenzhou PSB, Taizhou PSB initiated a campaign on April 11, 2013 officially against this *��*������������#�� ��� X���*�� �������� ������&�� *���������������������� ��� ����� �*���Luo, Ms. Zhu, Mr. Luo(2), Mr. Xu, Mr. Zhang and Mr. Lu in Wenzhou City, Mr. Liu, Mr. Wang, Ms. Gao and Mr. Zhai �<� !���" �#�:����� �������������� �$� ����� � ����������� !���� �������������������� !��goods was over RMB3M. The proved sales record of the targets was over RMB10M.

Recommendation Reasons

This campaign case provides reference case for raiding infringer selling goods of counterfeit registered trademark on Taobao. This campaign case not only cleans the linkages of counterfeit Philips shavers on Taobao and insures the purity of online market, but also raids the whole distribution network of the counterfeit Philips shavers including producer, wholesalers and distributors and insures the purity of off-line market.

This campaign is co-operated by the PSB of Zhejiang and Jiangsu province. The sound cooperation between PSB of different provinces provides solid base for the success of this case.

The involved value of this case is huge and the related infringers of this case got the corresponding punishment. In this campaign, the value of the onsite seized counterfeit Philips goods is over RMB 3M and the proved online sales record via Taobao is over RMB10M. Ten infringers of this campaign are detained and ���������<�� ���*����� ���� ���������� � ��#������ X&���� ��� ��� ��������� ����x������ *���$���*� ����� ��� �*�����������/�9�������<� �����������& � ���� �����'�� � ��������&����high attention to this campaign and the decision to punish trademark infringement.

<� ����� *� $������������������������ ��� ����� ��� �*���X�������������������� false for increasing credit” to avoid legal punishment.

Results

<�� ��� �*����������������$����<���� ��� �*��������������� ��������� �������������������infringers were sentenced from seven months to three years with reprieve.

Campaign Case of Mr. Liu, Mr. Zhai, Ms. Gao, Mr. Wang in Taizhou City of Jiangsu Province and Mr. Luo etc. in Wenzhou City of Zhejiang Province Producing and

Selling Goods with Counterfeit Registered Trademark of Philips

Nominated Agency: Taizhou PSB Hailing Branch, Wenzhou PSB Ouhai Branch

Nominating Member Company: Philips (China) Investment Co., Ltd.

21��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

22

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Case Description

x���� X~&���� �~����� ���� *�� �������#@�th, 2015, under supervision and coordination of Guangdong Provincial PSB, Economic Criminal Investigation Department of Guangzhou Public Security Bureau Panyu Branch took the lead to dismantle a syndicate manufacturing and distributing counterfeit HP packages by the joint efforts with Zhongshan Public Security Bureau, Xiaolan Branch of Zhongshan Public Security Bureau and Economic Criminal Investigation Department of Guangzhou Public Security Bureau, more than 150 enforcement ��$������������#���<���� ������� �������������� ��������� !�����&�������@& �� ����������� ������[�*����+�����9�&��������� �*&��� ���� X�� &��#�+'��� ����� �*�����������������arrested. The investigation suggested that the primary subject Mr. Lv was a former investigator who once worked ������������������������x����+� �*���������������� ������� &���&�������+#����X�������he was actually working for the investigation industry in the attempt to shirk his criminal responsibilities. To make sure Mr. Lv was convicted, HP assigned a lawyer team to closely follow up on the trial and the senior manager of ��x��x"����*��&�������������������� �*���&���������� $��+����������������� �*����� � ���� ���� *�������� ���� %���� *�� ��q� ��� ����� ���X�� � ��#���� + ��� ��� ���� *���� �� ������manufacture/sale of counterfeits for whatever purposes, and the high standard case management system.

Recommendation Reasons

1. The primary subject Mr. Lv was a former investigator in anti-counterfeit industry, which enriched himself with �������~ ���� *�� ���X��� �������&���� &��& � ��� ����x"����*��&�"�&��� �*� �������������� ���� �������������X��� �������[������*�����������*���+'��� �� ��� ����������*�������� ����&�*��

9�<��#�� ����������~��*�� !��� ������� ��+��� � ������ �������� ���&�� ������ ��"���packages syndicate with nationwide sales network. After the enforcement actions, this sophisticated syndicate was completely dismantled. The number of arrests and the seizure are big, and it caused strong deterrent impact to the market, and more importantly delivered a strong message to the IP investigation industry that do not attempt to cross the line, otherwise the brand owners will persistently go after you to make you pay the price.

@�<���������������*� ��#�������������]�� &��#����������������&������#$�����&���� �*�����:9������<�������� ���#�� ��������������������������#������ X&����� � X��~���& &�� ��&���� ��������+�� �������#�$�������9�������<���������������*� ������� &��#����� ���������� *� $���������������*������������������ �&��[�������������� ����

Results

On February 18, 2014, Guangdong Provincial Zhongshan City Second People’s Court rendered Verdict, ������ �* ���� ��������������� ������ �����#���� � X��~���& &�� ��&���� ��������+�� ��� ��&������#$�������/]������

On November 7, 2014, Guangdong Provincial Guangzhou City Panyu District People’s Court rendered Verdict, ������ �*���� �������� &��#�+'�������������������������#������ X&����� &�� ��&������&������# � �������9����������_�����^���������������������������� X��~���& &�� ��&������* �*���&/]&������]:&������ ��&������#$�����* �*���&���/����������9������������ ���#�

x������$����� � ���� ���*� ���������� & �*�����&�*������+#� ���*����� � � ��

Guangdong Mr. LV and Mr. XU Syndicate Manufacturing Counterfeit HP Packages

Nominated Agency: Economic Criminal Investigation Department, Panyu Branch, Guangdong Guangzhou Public Security Bureau

Nominating Member Company: China Hewlett-Packard Co., Ltd.

23��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

24

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Case Description

TANG, Zhiqiang and three other defendants manufactured large quantity of counterfeit “APC” UPS products, which were then sold to many provinces of PRC. Upon the right owner’s complaint, local PSB took further investigation and grasped the best timing to crack down on the underground plant and storage warehouse of counterfeits confiscating more than 7,000 pieces of counterfeit products. Above four suspects have been sentenced criminally, of which two principals were sentenced into imprisonment without probation and imposed $��&����������]���������&�������������������������%����&�� ����������"�����������������������+��[������� * ���������������� ��<����������* ����������$�&������� * ���'��*�&����

Recommendation Reasons

/�%�+������$�� ������������� ������ ���������������������$�����������������%�� *����������������� �� &�����������������#���������$��������������� �*�<��'�� � ��������%�� *��������� �� &�����������#�X����� ����'��*&����

9�<� ����������������������&�������* ����������$�&�������* ���'��*�&��� ����� �������It menifests the judicial independence principle of criminal proceedings and the precious spirit of district court’s in insisting independence in law enforcement.

3. Here, the court not only held the four defendants guilty of counterfeiting registered trademarks, but also �X����#��������� ����&������� ���������������� � ����'��*�&���� �����������������������+�destroyed by Chancheng District Branch of Foshan Public Security Bureau, therefore provides clear foundation for local police to enforce the court’s decision.

4. The products in this case are comparatively special and have great social effects. Through proper inves-tigations and enforcement, a large number of counterfeit “APC” UPS products were prevented from entering into hospitals, banks, government institutions and industrial enterprises, which effectively eliminated the danger to property and personal safety.

Results

Defendant TANG, Zhiqiang guilty of the offence of counterfeiting registered trademarks, and shall be sen-������ ��� &�� ��&����������#������ X&����� ���������#��]���������>���������=���� �*� �guilty of the offence of counterfeiting registered trademarks, and shall be sentenced into imprisonment of one year and eight months with a penalty of 50,000 RMB, etc.

Retrial Case of Foshan TANG etc, Counterfeiting Registered Trademark “APC”Nominated Agency: Chancheng District Branch of Guangdong Foshan Public Security Bureau, Guangdong Foshan Chancheng District

People’s Procuratorate, Guangdong Foshan Chancheng District People’s Court

Nominating Member Company: Schneider Electric (China) Co., Ltd.

25��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

26

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Case Description

In early 2010, Unilever, BDF and other brand owners found large quantities of branded personal care ��������� �������� ��������&q���*!������ *����� �������*X �*���������������������X��������smuggled to Vietnam. Upon in-depth investigation, brand owners successively locked down a large scale trans-province and trans-country counterfeiting network involved with 5 targets, incl. a Carton Printing Factory and a ���&���������# ����**���" �#����� *������ �� �q���*!���" �#��^��������^������� ����*X �*" �#�q���*X ���� ��������^������������� ����*�� ������&��������� ����&�^ ������������ �����*������������&q���*���*���q���*X ���� ������ ����#���������������� & ��� �� ���� ���*� ��the counterfeiting network in July and August, 2014. The three criminal actions seized about twenty million pieces ����������� ������ �*�+��� �� ��#& �� ��|�������� !�����# X����������� ��&��� ��������one delivery vehicle. The series of actions captured seven principals and accessories. Thus, the large scale counterfeiting network has been cracked down thoroughly. At present, China PSB and Vietnam PSB are initiating the action plan against the Wholesaler’s Store in Mongcai department store, Vietnam.

Recommendation Reasons

1. This case involves a large scale trans-province and trans-country counterfeiting network, which has a clear � � ��������� + � � ����������������� �����#��� �� ���X��� ����* ����� ��&��� �� �$���� ��conduct investigation, collect evidence and take action.

9�q���*���*������q���*X �����������#����#!�������������� � �*�������$����#���� ��������trans-province and trans-country counterfeiting network. Furthermore, all the principals involved were brought to justice, which effectively curbs the cross-border counterfeiting and distributing activities.

3. Large quantities of counterfeit personal care products were seized in this case, which avoids the damage to ����&���������>&����� �������� ���� ���������������� ���������������� �?����*�#�����#�������������� � �*and distributing industrial chain as well as protecting the legal interests and brand image of the brand owners.

4. China PSB and Vietnam PSB spoke highly of the investigation and action upon this criminal gang. It could even be said that it is indeed a case of close cooperation between police and brand owners of cracking down cross border counterfeiting network.

5. China PSB and Vietnam PSB are initiating the action plan against the Wholesaler’s Store in Mongcai department store, Vietnam.

Results

1. The Shampoo Filling Factory in Wanjiang District, Dongguan City hereto: Dongguan First People’s Court made its judgment that target principal, Mr. Chen, was sentenced to three-year and three-month in prison and was $���]�������������&& �� �*����� &������������ � �*�����* ����������&��[�^� ����������� ��� �*���������� ���#�������������~#���������~&���� ��� ������������� ���#$���/���������

2. The Carton Printing Factory in Chang’an Town, Dongguan City hereto: Dongguan Second People’s Court &��� �'��*&����������*���� �� ��������������������������~#������ X~&���� ��� �������$���30,000 RMB for committing the crime of illegally counterfeiting registered trademark.

@�<��^���������^������� ����*X �*" �#����*����**��*" �#������{���*���� �� ��������� ��detained to Fangchenggang First Detention Center on August 15, 2014 and then obtained a bail pending trial on September 5, 2014, the case is under judicial proceeding.

The Series Cases of Mr. Chen etc. Counterfeiting Registered Trademarks��& �����x*���#{q���*X ���� �� ������q���*X ���� �� ��������*����**��*�������q���*���*���**�������

Guangdong Dongguan PSB Wanjiang Branch, Guangdong Dongguan PSB Chang’an Branch

Nominating Member Company: Procter & Gamble (China) Co., Ltd, Unilever (China) Investing Co., Ltd, Beiersdorf AG, L’Oreal (China)

Co., Ltd., Kao Corporation

27��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

28

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In year 2011, ·hi Dai Zhensong was captured by American police for being involved in selling fake airbags and confessed that fake airbags were purchased from Guangzhou City, China. The Ministry of Public Security in China received the clue and appointed Guangdong Provincial Public Security Department to handle the case. Economic Crime Inspection Team of Guangzhou Public Security Bureau investigated the case for above one year and found fake airbags manufacture and sales channels in which many people and places were involved. On August 15th, 2013, Economic Crime Inspection Team of Guangzhou Public Security Bureau arranged fifty law enforcers to take raid action against relevant counterfeits manufacture factory, warehouse and shop. Total 17770 pcs of fake airbags and relevant components marked with registered trademarks or not was seized and 12 domestic and overseas famous brands were involved in the case. The case was one of the most important airbags cases in China. On August 16th, criminal suspects, Mr. Huang and Mr. Zhang were criminally detained and were arrested on September 18th, 2013. On ����&+��@/��9�/@�q���*!���|��X �� �� ���������������������� � � ������+� �������� ���_�������#9����9�/:�q���*���*|��X �� �� ���������"����&���$�����������+����������

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/?<������������[�� �+�* �"� �����������x&�� ���&��[���������������+�� ���������"� ���+� �� � ������� ����&��[������� �*��������$� ����#����������"� ����������&��� &����������%������������������#Protection Work and made efforts to fair and normal business relationships between China and American.

9?<������ �������� �*�� ������� ������������&������������������������X������������ *�countries and more wide areas were involved.

3) Many domestic and overseas agencies were involved in the case, such as American police, China’s Ministry of Commerce, China’s Ministry of Public Security, Guangdong Provincial Department, Guangzhou Public Security Bureau, Guangzhou Administration Bureau for Industry and Commerce, Guangzhou Quality and Technology Supervision Bureau and Certain Department of Guangzhou Air Force

4) Long investigation period: Guangzhou Public Security Bureau continuously spent nearly two years on ���� *�� �*������*�����$����#&��������&�������������+������������ �&�����������������

5) The raid action was thoroughly complete led. Not only quantities of airbags and airbags components marked with relevant trademarks were seized but also quantities of airbags and airbags components without registered trademarks were seized.

6) Comprehensive laws and regulations involved in the case: Trademarks Law, Products Quality Law and Local Regulations in Guangdong Province

7) Quantities of airbags components and vice airbags without registered trademarks were seized, so the case ���*����X�&������+���&��+� ����������[�� �+�*��� ��������

8) Nissan, BMW, Benz, VW, GM and Ford etc 12 domestics and overseas famous brands and many automotive in ���"����&�� �� �����#���� ������� ��������%������ �� ���������������������� ���

9) Auto airbags was the key to automotive driving safety and fake airbags severely endangered to consumers’ property and life safety and caused bad social effect.

/�? ̂���� �� �������{_������&+��9nd, 2013, Economic Crime Inspection Team of Guangzhou Public Security ���������������q���*���*<����� ����������������������>�������&+��@rd, 2013, Guangzhou Daily Newspaper, South Urban Newspaper and New Press Newspaper respectively made series of reports about the case. On February 16th, 2015, Economic and Law Program in Channel 2 of CCTV made a special report about the case.

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The accused, Mr. Huang was sentenced to two years imprisonment on probation of two and a half years and was $������/��������� +� �* ������� ���� �*��&&�� � ���������� � �*��* ����������&��[>�������������=���*������������� ��&���� &�� ��&��������+�� �������#��������$������/����>���� !������������������� � �*��* ����������&��[�������$�����+#q���*!�����+� ������ �#�������

“Min Yue No. 1” Case��& �����x*���#{}����& �"� &�%����� ����������q���*���*���� �� ����+� ������ �#>}����& �"� &�%����� ��������&�����

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29��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

30

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Case DescriptionShanghai Mice Investment Management Co., Ltd. (“MICE”) operated an unauthorized “VICTORIA’S SECRET” lingerie

store in Shanghai using the “VICTORIA’S SECRET” trademark on its store signage, employee badges, VIP cards, fashion �������� %���� � ��� � �����#��� &����+������%��� ����~�����������X��� �����������*� ����������*������distributor in China”. It also conducted a fraudulent franchising business by selling fake rights to operate VICTORIA’S SECRET stores in China.

By its infringing acts, MICE has caused substantial damage to Victoria’s Secret’s business reputation and good will, defrauded customers and seriously hindered Victoria’s Secret from developing and setting up legitimate stores in China.

�����%$����� � ����� �� ���������*�� ���/%����&�� ����������"���������<� ��"�����?�*� ���%"}������� �its infringing activities and in particular to stop selling products and operating a retail store using the VICTORIA’S SECRET trademark on store signage.

Results

The Trial Court found that MICE’s use of the “VICTORIA’S SECRET” trademark on store signage, in store advertising, employee +��*���%��������� �������������������� & �*��+��%"<_�%x���}"�}<�� ����~�������������� ���X���������intent of indicating genuine goods and the reasonable limitation of fair use. It opined that MICE’s acts would mislead customers into believing that the retail service is provided or authorized by VSSBMI. More importantly, the Trial Court ruled that MICE has infringed VSSBMI’s Service Trademark in Class 35 and that MICE’s false claim to be VSSBMI’s “brand public relations/franchise operator in China”, etc. constitutes and breaches the PRC Unfair Competition Law. As a result, the Court issued a permanent injunction against MICE, and ordered it to pay damages of RMB500, 000 and also to make a public apology.

MICE appealed to the Shanghai Higher People’s Court (the “Appeal Court”). On 13 February 2015, the Appeal Court &����$���'��*&����� & �*�%"}������������� � �*���/� ������'��*&����

Recommendation ReasonsIt is not unusual in China that resellers open unauthorized retail stores by copying the look and feel of a genuine brand

store. As China does not prohibit parallel imports, brand owners who make substantial investments to bring their products ���"� �������$������������������������[������� ����+���������� �*������&�� �������������� ���������activities. In addition, Brand equity is also diluted as these parallel traders do not care about providing the same quality of customer or after care service which brand owners have to invest in to establish goodwill and reputation in China. It is not easy for brand-owners to take enforcement action against unauthorized stores because before this case no Court had clearly ruled on the issue and the AIC does not view the operation of these stores as a form of trademark/service mark infringement or Unfair "�&��� � �������� �*&������������������&�� &�& ��� ����� �[ �*������#��� ���� �* ������$�����������must have the necessary brand approval and are often reluctant to take remedial actions after the store is open.

<� �����+����$��� &��������"���� �"� ���������������� ��@��&���X ��~{/?���� ���& +�� ����&�������� �������� �������� �**��� ��+���������� &������*���>9?���� �#������������*��&��� �*����� ��&��[>���3) deal with what is the evidence threshold of showing the fame of a brand when the brand is widely known internationally

including in China but may not as yet have set up retail operations in China. The Shanghai Courts held that although a parallel import reseller has a right to retail genuine goods, it does not automatically follow

that the reseller has been granted authorization to use the trademark in a manner inconsistent with fair use. The fair use of the Trademark for Goods by the reseller must be within a necessary and reasonable limitation just for indicating that it is selling genuine goods. The Courts �� ������� �����������<����&��[���q����X������ � & ��� ���������� �����&������� ���+�������������������� �service, it would also damage the value of the identical Service Trademark leading to infringement of the Service Trademark as well as unfair ��&��� � ���<� �����&��[��*��+���[�����*�� ����� $���������������� ������������

The Courts also dealt clearly with the “retail service” issue as retail service is not a listed category recognized by the Chinese <����&��[_�$�������* ���� �� �"��@]�<�������&������'��*&����**������������� ���� ��� �������*� !��� & ��������� ��� ��& �"��@]������� ������������� ��������������<��x�����"��������X����������&+ �����"�Anti-Unfair Competition Law. The Courts recognised the fact that although Victoria Secret had not set up retail operations when the infringing activities commenced, Chinese domestic media has wide coverage on this brand and that advertisements in China can also +�� ���������&��+� �������� ������� �* ����+�����+�� � �*������ ���*�������&� �"� ���<� *� $�������brand-owners as it widens the protection ambit for brand owners whose products may be internationally famous but have yet to be � �� +������$� ���# �"� ���

Victoria's Secret Stores Brand Management, Inc. v. Shanghai Mice Investment Management Co., Ltd. for Trademark Infringement and Unfair Competition

Nominated Agency: Shanghai No.1 Intermediate People’s Court, Shanghai Higher People’s Court

Member company: L Brands, Inc.

31��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

32

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Case Description

From 2011 to May 2012 when Qian, Dai and 14 other persons were arrested, they had been engaged in manufacturing counterfeit products bearing LV, GUCCI and HERMES. Among the counterfeit products, the criminal value of counterfeit LV products totals over RMB 20,000,000. In May 2014, Guangzhou Intermediate People’s Court of Guangdong Province issued the second instance criminal verdict in which all criminal defendants were ruled to have committed a crime of counterfeiting registered trademarks, and were sentenced to imprisonment ����*� ���� & ���$���

In July 2014, LVM brought several civil lawsuits based on the abovementioned criminal verdict that has come into effect. In the lawsuit against Qian and Dai, LVM requested the court to rule that the two defendants should '� ���#��&������������������$�&���������[��� �� �#��� � ���&����� �������� & ���$�����&��#������ & ���$���� �+#��������������������+��� �������� � ���&����� ���

Recommendation Reasons

�/?<� �����+����$����� �"� �� ��� �������������$�&����� � ���&����� �������+��� ��� ������ & ���$�������� &���&����� ������������������ ������������&��������"������}����� �*the Property Portion of a Criminal Judgment on 6 November 2014. It may provide a precedent as a reference for other courts. Shortly after the court issued the second instance criminal verdict, LVM raised an opposition �*� ������������������&���������� & ���$��������������� � ����������������������������&���of the criminal fine RMB 450,000 paid by the defendant Dai. This greatly facilitates the enforcement of civil ��&����� ��>

�9?<�����������������/�::/��9� ��������& � �����������+���X����� %� ����������� ����compensation, the court has holistically considered the fame of LVM’s trademarks, the production mode and scale of the two defendants, the actual selling price of infringing products, etc. The court decided at its discretion that ������$���� ������������ ��� �* �*������������+�/@�@���� �� ������+����������������$���� �������������� ������������������ �9�/9������ �*�����������+� ���+#������������ � ���������>

�@?<�����������#��������������� &���������+����� ����� �*�������#�������������X�����%�practice, Chinese court supports a claim for reasonable costs, but in rare cases it would fully support the amount ���� &������&���#����#����������&���������+���������+#�����>

(4) It is somewhat controversial regarding the statute of limitation for a civil lawsuit based on criminal verdict. <������� ��� ������� $���������������� � & ��� ������� � � ���� �+�������� & ������� ������+�calculated from the date when the criminal adjudicative document comes into effect. It may provide valuable reference for other courts in handling similar cases.

������

On 1 December 2014, the court ruled that the two defendants jointly pay LVM compensation in the amount of ���/�::/��9�� ����� �*�����& ������������+���������������$�&�����������[��� �� �#��� � ���&����� �������� & ���$���� �+#����������������<� � � �'��*&�������&� ����������

A Trademark Infringement Civil Case

Nominated Agency: Guangzhou Intermediate People’s Court of Guangdong Province

Nominating Member Company: Louis Vuitton Malletier

33��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

34

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Case Description

In early April, 2014, GACC launched the Special IP Action on fighting against infringing sporting products ����X������ ����� �*9�/:^����"���_���#9�9�/:�"���*�����*# � %&�����}X����"�������&�������X������ ����������� ����+���������~+������������� ��q���*!���"���&�<����� ���&������inspection decision based on previous trainings provided by brand owners and risk analysis. Altogether 50,843 pieces of apparel and shoes bearing trademarks of “Nike”, “Puma”, “adidas”, “TOMMY HILFIGER”, “LEVI’S” , etc., were seized.

Recommendation Reasons

1. Guangzhou Customs proactively cooperated with brand owners such as FIFA and Nike during the Special IP Action and reinforced the protection on their trademarks and copyrights recorded in GACC system.. Besides &�� ��� �*[�#�X������ ���q���*!���"���&������[��� � � �� ���� �� ��+��������������� ��%����� � �*����������������� �*�� ����� *�������� ���+#+���������� &���� �*��� � ����� ����$� ���#�%��� ����+# �� � �*+��������������������� �� !��%����� � �*�����X����*� ����� *�����+���[�#counterfeit shipping route and blacklist of past infringers, Guangzhou Customs optimized their risk control, which led to the success of this case and huge volume of seizure.

2. The seizure was huge and the impact on potential infringers was tremendous. This case targeted at large-�����X������ �������� �**������ ��*��������*���������������&��*���� �*��&��� ���������� ���#������������X������ ���� ��� �* �*���� �*��������������� �*��� &�*����������&��� �"� ���

3. The practical working style of Guangzhou Customs and its effort in calculating the seizure value made it a role model of administrative law enforcement. During the investigation of this case, Guangzhou Customs made a reasonable appraisal on the price based on facts. After further investigation and education on the principal, q���*!���"���&���������� ���� !�������������������]�������� ����/9]� ���*�� ���� ����� * ����� ������ ���+#����� �� ����<� ����#*����X�&���������� ������[ �*�#������& � ���� �����enforcement.

Results

<���X����������� ���� ����& � ���� ��������#������������+���������������q���*!������for criminal investigation.

GACC Kicking Off Special IP Action for World Cup, Guangzhou Customs Made Outstanding Achievements

Nominated Agency: Guangzhou Customs

Nominating Member Companies: Nike Sports (China) Co., Ltd., adidas Sports (China) Co., Ltd., Levi Strauss Commerce (Shanghai)

Limited, Kering (China) Enterprise Management Limited, Abercrombie & Fitch Europe SA

35��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

36

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Case Description

Sony Mobile’s patented mobile phone LT18i won the prestigious Red Dot Product Design Award and EISA Award for best European camera phone. It was the plaintiff’s best-selling flagship mobile phone and brought huge market returns. Shenzhen GANG LI TONG soon made a similar mobile phone modeled KPT A9 copying the �� *��������� �� ����</� �������`�<x�� �� ���������� �������� ���������������#��+ ��+���*���lawsuit against Shenzhen GANG LI TONG.

The defendant fought aggressively back in the litigation due to the importance of its KPT A9 mobile phone �&��* ��������������������#� ��������������&���X��������� ��&�� �� ����� �* � � �* '�� � �� ��objection, appealing against the jurisdiction objection decision, and threatening to file patent invalidation. In �������� ��������� � *�� �������������������� ���$� ����+ ������[��&�+ �����&��� �<&����������applied to the Shenzhen City Futian District Bureau of Labor for shutdown to show that it had stopped production of KPT A9. During the court hearings, the defendant denied all the facts, and argued that the Lt18i design was an �X � �*�� *��������`�<x������ & ����������/� �� *��

Recommendation Reasons

(1) As a sizable domestic mobile phone manufacturer, the defendant blatantly copied the plaintiff's well designed mobile phone. The plaintiff succeeded in stopping the defendant's infringement via the litigation and obtained damages higher than average damages awarded for design patent infringement litigations in Shenzhen.

(2) Shenzhen Municipal Intermediate People's Court accepted the case on 21 June 2013, held two court ���� �*����� ������������$��� '�� � �� ���+'��� ��������������*� �� ��� '�� � �� ���+'��� ����� ���and issued a judgment on 11 July 2014. Shenzhen Municipal Intermediate People's Court has handled the case in ����$� ����������� ����&������

(3) The Network Access Permit of sample KPT A9 mobile phones from notarized purchase proved the defendant's identity as the manufacturer of KPT A9. Successful pretrial evidence preservation is the key to success in this litigation.

(4) For mobile products, there are less and less infringers copying famous brands directly while many infringers still copy the appearance of mobile phones of those famous brands. This case prove that design patent litigation is an effective means of protecting intellectual property rights of mobile phones, if pretrial evidence can be well preserved.

�]?<� ������*����X�&����������������� ������ *������� ��� �*�&���'��*&����������on products that have small room for design Mobile phones have relatively smaller room for design than other products and subtle design differences may be considered an impact on the overall visual effect. Shenzhen ��� � ��� %����&�� ����������"���� ���X +�#��������� ���#��� ����� *������� ��� �*�&��� '��*&���standards, and ruled KPT A9 fell into the protection scope of the plaintiff's design patent and that the defendant constitute design patent infringement.

Results

The court ordered the defendant to stop infringement, pay damages, and bear all costs of the litigation.

Sony Mobile Communications AB V. Shenzhen GANG LI TONG Technology Co., Ltd for Design Patent Infringement Case

Nominated Agency: Guangdong Shenzhen Municipal Intermediate People’s Court

Nominating Member Company: Sony Mobile Communications AB

37��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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38

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Case Description

<����� �� �� ������~� ����&��������� �&��������� �*������ ��X��#�������� %�����* ������series of trademarks including but not limited to trademark G732879 and G987322. The plaintiff found that the defendant �, without the plaintiff's permission, used plaintiff’s same or similar trademark on its websites (boebofry.��&>+��+���#����?����� ��&��� & �����������<����������������������� �� ��������&��[����� �products package and decoration for advertising activities. Meanwhile, in the name of general agency in China, the defendant ��largely sold the infringing products with high price in many cities including Inner Mongolia, Harbin, Hangzhou and Chongqing in the way of recruiting franchisees. The defendant � as defendant �'s associated company started to aggressively sell infringing products in the name of general agency in China since its establishment. Its sales area includes Hangzhou, Guangzhou and etc. The defendant � is the legal representative of the defendant ��������������� � ����*!���&� ���#��� ��� �* �*��������<����� �� ��$����� � �litigation against the above mentioned three defendants to Hangzhou Intermediate Court asking the Court to �����& ����������������������*��������� �� ��������&��[������&��[ ��� �*�&���>������ �*��������defendants immediately stop the infringing activities and claiming a compensation of RMB 5,000,000.

Recommendation Reasons

In this case, Hangzhou Intermediate Court made a clear reasoning and judgment on the issue of Burberry device trade mark protection range and compensation criteria.

� ���#� ���"����������#���$�&��� ��������� �*��������� ��&��[��������������� �����������surface should be regarded a direct trade mark infringement.

�������#������������$�&����� �� � ���������������*������������ �������$������������� �����#sold infringing goods, so should bear joint liabilities for all infringements.

Lastly, the court also rendered the highest legislative compensation and reasonable disbursement considering the cited mark’s high reputation and its commercial value as well as the damages caused by the accused infringing acts.

Results

<��������������� &&�� ����#������� � ��� �* �*��� � � �> ������������������#�����&�*������]������ �����+���#� �����&����� ��> ������������������#���/@��/����@ �����+���#������&���������+���#� ������+���X����> ������������������+� ������&��� � �=��' ��*��*����������������� & ������������� �����������������+���#�

Burberry Limited V. Guangzhou Boya International Trading Co., Ltd, Guangzhou Chengya International Trading Co., Ltd and Mr. Xiang for Trademark infringement

Nominated Agency: Zhejiang Province Hangzhou Intermediate People’s Court

Nominating Member Company: Burberry Limited

39��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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40

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Case Description:

<����������������*�� XXX������[��<"����� ������� �9��� �����*�� � ����� ��� ' �*���Hangzhou, is engaged in developing social games, website games and smart phone games and is one of the leading companies in the industry in China. After found the defendant was massively illegally using Microsoft copyrighted software in its business, Microsoft tried to discuss the licensing issue with it by business normal engagement and lawyer letter warning in 2012, but failed after almost two years.

On January 31, 2013, Microsoft filed applications for evidence preservation action with Shanghai Xuhui � �� ���������"�����<����������[ �*������ �� �������������$�� �����*�� ����+����#/�9�/@������18 different types of Microsoft software on defendant’s 531 PCs and 19 servers, including Microsoft Windows, _�$���� ������� ��^ �����������������������

_���+����#/:�9�/@�� ������$���:����*� ������������ �� �����������������������#� *��infringement, and demanded judgments against defendant for compensating damages of about CNY 9.21 million and the burden of all court fees.

Recommendation Reasons:

1. Thasdamages granted by the court were the biggest one which Microsoft was ever granted in the civil lawsuits in China. The court made breakthroughs either in the individual case or in the four cases filed by Microsoft.

2. The judgments adopted the ratio of the found unlicensed software with the defendant’s total PCs and servers to find the amounts of total infringement, and calculated the damages using the market prices of the software in matter. The methodology is good reference to the cases in kind.

3. The court held the company responsible for the software used in its daily business, which is another good reference.

4. For the argument that there was no usage there was no infringement, the court held that when deciding the infringement, the court should only consider whether there was copying and installing of the software in matter for business purposes, and usage or not should not be considered by the court.

5. The case had profound impact in the website game and smart phone game industry.

Results:

The court reached the judgments in favor of Microsoft, finding the defendant infringed on Microsoft’s copyrights on the software claimed, and adjudging the defendant to compensate Microsoft the damages and reasonable costs of CNY 7.25 million in total.

Microsoft Corporation v. Shanghai xxx Network S&T Co Ltd Copyright Infringement

Nominated Agency: Shanghai Xuhui District People’s Court

Nominating Member Company: Microsoft Corporation

41��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Case Description

In 2012, NBA Properties, Inc. (NBAP) discovered that Tesco Trading (Qingdao) Co., Ltd. (TESCO) was offering for sale sneakers bearing various NBA team logos (including Los Angeles Lakers, Atlanta Hawks, Sacramento Kings, Toronto Raptors and Cleveland Cavaliers) that were the subjects of Chinese trademark registrations in class 25. In 2013, NBAP commenced a trademark infringement litigation against TESCO before ���� �*���%����&�� ���"�������x����� ����������+��/� ������'��*&������<}�"_$��������������������*� *���"����� %������&+��9�/:��������*� *���"���� ����$��� '��*&���������� �*���judgment issued by Qingdao Intermediate Court.

Recommendation Reasons

How to determine the distributor’s infringement liability has been controversial. In cases in which the distributor of counterfeit merchandise denies liability for the infringement, provides some evidence to show the ��� �* �**����������������&������&���� ������ ���� $�������� ��� '��*������& � ���� ��agencies have split views on whether to impose liability on t distributor. This is due to ambiguous language in Article 64 of the Trademark Law. Interpretation of this language by judges and administrative agencies has been inconsistent. Many brand owners are of the view that the statutory language and the way in which it is interpreted may create a “safe harbor” for counterfeit distributors. Especially with the new language in Article 60 of the revised <����&��[����� �� +����&�#�� �#�������& � ���� �������� �� ����x%"� !������$��?+#��� & �*that they do not have knowledge that the products they sell are infringing and providing some evidence to show that they procured the infringing products from upstream suppliers that they can identify. But in this case, the ��������������������������������+����������#���� �*��� ����� �� +��������+� *�������X��� ��high standard duty of care under which TESCO shall be liable for trademark infringement based on constructive [������*������ � ���#������$� ������ ��* � &����� �������������� ���#��������� ��� �* �**���from suppliers and identify those suppliers. We believe that the 1st and 2nd instance judgments in the TESCO ��������� ������*������� �������+� ����*�������#�������� $�������� ��� ����x�� ����:���x�� ���60 of the Trademark Law in cases involving distribution of infringing commodities. This theory will substantially narrow the “safe harbor” available under these provisions for distributors of infringing products, and provide an �X���������������� ����������������������&���+�� ����+������������&�[���������� ����� �*enforcement against distributors of counterfeit merchandise.

In addition, although only 5 pairs of infringing NBA shoes (offered for sale at RMB 69/pair) were obtained in the notarized purchase in this case and no other evidence was available to show the actual sales volume of the infringing NBA products, the courts still granted a statutory damages award of RMB 400k in order to create ��$� ��������������<���&������ �� �������������� ���&����� �������� *�� *���� �� ��&��[�+��case. Last but not the least, this case has been selected by Supreme People’s Court as one of the Top 50 Typical IPR Cases for 2014, and ranked No.1 among the 10 Best IPR Cases in 2014 that were selected and announced by Shandong Provincial Higher People’s Court.

Results

The 1st and 2nd instance courts supported NBAP’s trademark infringement claim, ordering Tesco to stop infringement and pay RMB 400,000 to NBAP as compensation.

NBA Trademark Infringement Case

Nominated Agency: Qingdao Intermediate Court and Shandong Higher Court

Nominating Member Company: NBA

43��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Case Description

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Changsha Bowei Automation Equipment Co., Ltd. Infringing Registered Well-known Trademark Case

Nominated Agency: Hunan Changsha Administration for Industry and Commerce, Hunan Provincial Administration for Industry and Commerce

Nominating Member Company: Schneider Electric (China) Co., Ltd.

45��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

46

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Case Description

In 2003, Ningbo Deman Compressor Co.Ltd. registered No. 3592066 trademark which was approved to be �����*��������&�������������x������������ �*����������$���������� ��� ���������������Ningbo Deman had malicious intention of registration on MANN’s trademark rights and brand. We then submitted ���� ��� ���� �����&��[���� � ��������� � ����� ����<����&��[_�$����<�������x�& � ���� �����%�����#�"�&&��� ������������������+� ���"� ���<����&��[_�$��?���<�x������� ���#�� � �*� ã ” which was approved to be used on “gas and liquid compressor(machine element)” as cited mark. After the failure of administrative procedure, under the instruction of law firm, we held an evidence collection meeting initiated by our legal department and effectively collected numerous evidences by multi-department cooperation. Finally, ���# �*�������� �����������+���$���������� �������������� �

Recommendation Reasons

Neither Trademark Office or TRAB supported our statements for opposition and opposition review. They suggested that opposed mark and cited mark were the same, however, the goods they approved to be used on ������� & ����%�� � *�� �����*������ ���� $��� ���� & ��� �#+������*������ �����+���������x����������&��<��$����&�����������+#�x�������� $��� ����������*����� ��<��#����������#+��� �#���&�������� ����<������� ��+������$���������&������X ������������$�������������������&������������� ���#���� ��#���#&#����� ����������� �$�������� ���&��������� ���� $��� & �������#���# �*����� ������ ����������$���������� ��������+���$���� & ����x������������ ��������*��� ���� $��� ���� & ��� �#����������+����� ��� ����

Finally, based on numerous evidences proving the relations between goods, the overlaps of consumers, the popularity of MANN’s brand, Ningbo Deman’s maliciousness and the necessity of protecting this case, the court ���������������&������ ���� $�����*������� & ����

It has been discussed for a long time on how to identify similarity on trademark and service, however, the '�� � �������& � ���� �������� � ������������ ������$� � ��������&���������������<��� ��������� ��&��#��������+�&��� � �*����� $������<��&��� �*���� ������+���������� �@������� ���#����&����������������� ��� ��� ����*��&����������+��� ���� $��� ���� & ��� �#��*��������� ���&����*��������� ������ ���� $��+#��� !���������� ���^� ��� ��� ������������ ���� $������*��� ��#���#&#����� ������ & �����������*����� ���� $��� �����*������� �������� ����������#���� ���� $��� ���� � & ��� � �*������^��+& ������&������ ������������������� � �� �*��case. This might avoid the unlimited enlargement of identification range. Thirdly, from the aspect of protecting companies’ rights, since there are more and more marginalized imitation registration, we need to courage the attempt and to make some break troughs in practice. Only if we have unlimited hypothesizes, can we obtain unlimited possibilities to achieve our goals.

Results

The judgment of second instance rejected the appeal request of Ningbo Deman and sustained the court ��� �*��$�� ����������� & �������� ����<�x�����������<�x���&�[�������� ���

Administrative Litigation Case of Trademark Opposition on Trademark“{ ”

Nominated Agency: Beijing High People's Court of PRC.

Nominating Member Company: MANN+HUMMEL GMBH

47��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Case Description

x���������9�/@�/9�| ��"���&���������+���������*��+��X��������%��� +#� �� �%&�����}X����"�&���#��[ �������*� ������ *� ���*��*������ �*������ � ���� ��������������� ����name. In January of 2014, the case was transferred to Yiwu Market Supervision Administration. After several &����� ���� *�� ��� ��*������ �������&&�� ��� ������&������ �*� �����%������� �����$������&���[�������� ��x�& � ���� �� � � ���#$X�����������������[����*�����&����*�� ���+��"�&�� �Ltd. In the middle of June, 2014, the case was transferred to Yiwu PSB Food and Drug Environmental Crime Inspection Dept. The police investigated and checked the clues, ascertained the information of the interfered Anmu �������&���#������ &�����������������*������������$�����x�*���_�x�*�/��| ���������and Drug Environmental Crime Inspection Dept. combined Yiwu Market Supervision Administration to make a sudden attack against Shanghai Lanbao Cosmetic Ltd., and seized 1404 cartons (over 1 million pcs) of counterfeit ���*���*�����&��������&�� ��������� ������� �*9������&��[���&��#���q��X��& ��`� ����������Johnson, Novartis, and Merck, with the seizure value nearly RMB 5 million.

Recommendation Reasons

/�<����� ����X������� ������������ ����*� �� ���&��+���� ������������ � �������&industry in these years. The seizure has the important meaning for safeguarding the legal rights of IP owners and customers inside and outside, as well as China’s International image.

2. The seized counterfeit drugs were not manufactured from underground plants, while from a cosmetic ��&���#�� ��������/�#���� �X��� �����������/��& �� �������������� ������<����&���#&�����������*�����&������ ��[����* � �����&�����&�� �������������X�������� ���� ����}���which has very severe impact.

3. The case is a typical for joint enforcement from Yiwu PSB, FDA, and Customs. Especially that when disposing the case, the PSB controlled and questioned suspects in time, and FDA was responsible for identifying, counting the counterfeit drugs, with labor division while good cooperation, which established a new format of joint enforcement.

4. During the case disposal, PSB, FDA and Customs paid attention to form a regular communication mechanism with the IP owners, to enhance the understanding and trust, and communicate in time the new feature ���X���� �*��[����*��� �����������������*����� � ���������������������������� ���

Results

/�_�x�*���9�/:�| ���������������*}�� ���&�����"� &�%����� ���������� �����$����������� ���� *�� ��>

2. On Aug.19, Yiwu PSB Food and Drug Environmental Crime Inspection Dept. combined Yiwu Market Supervision Administration to make a sudden attack against Shanghai Lanbao Cosmetic Ltd., and seized 1404 cartons (over 1 million pcs) of counterfeit drugs and great amount of cosmetic products, interfering 27 trademarks from Bayer, q��X��& ��`� ����������������������� ��������[�� ������ !�������������#���]& �� ���

3. Now the 2 principals of Shanghai Lanbao Cosmetic Ltd. have been arrested, and the 11 persons involved have been adopted criminal compulsory measures.

“Shanghai Lanbao Cosmetic Ltd. Manufacturing and Exporting Fake Drugs and Cosmetics” Case

Nominated Agency: Zhejiang Yiwu PSB Food and Drug Environmental Crime Inspection Dept., Zhejiang Yiwu Market Supervision

Administration, Yiwu Customs

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Ltd., Merck (China) Investment Co., LTD., Novartis Pharma Co., LTD

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Case Description

In September 2014, Hebei Provincial FDA Inspection Bureau received the complaint about an underground workshop manufacturing counterfeit drugs in Shijiazhuang City and distributing via internet to all over China. Hebei Provincial FDA attached great importance to this case, immediately started investigation and contacted Hebei Provincial PSB Investigation Team to discuss joint action plan.

Through in-depth investigation, it was found that the target used fake ID to rent warehouse and purchase raw &���� ���&�������������*���� �� +���� � ����������������������� ���#���*� ��X�����&���#���use third party to collect money. By joint efforts of Hebei Provincial FDA and PSB, the raid action was successfully ��������������9��9�/:� ��� ' �!����*��x� ��X ����������� ' �!����*���� ��X �������� �����*��&������� !��� ����� �*{9��:����+�������������� ���x�%��:�]]����[�*��]�����������:��@��security labels, etc.

<�������������������^��*�������� ����x���� ����� ����$� ������ ����������[���������goods and related distributors.

Recommendation Reasons

R9The suspects were very sophisticated at avoiding inspection, by moving locations hither and thither, which �����&���� �$���� ��� ���� *�� ����� ����� ���

R9<���������� ������������������������������*����X��������* � ���&��� ������ ����and third party to collect money, use fake ID during the process, which can be regarded as model case for new means of crime.

R9"�������� ����*��������+# �� �� & ���*��*��� ������� ��������� ������ �� �X���&��#dangerous and would cause deadly threat to human health.

R9The two law enforcement agencies made swift response after the complaint, wisely deployed resources and &�����&������ ����� �������������� �����������"��~$� �*� ���� *�� ������� ���� ��������$� ���and accurate. They held communication meetings regularly, cooperated closely to collect necessary evidence and make sure the following procedures go smoothly.

Results

<����������������������^��*���+������� ���+#����<� �����+���$�������������for prosecution.

Mr. Shao and Ms. Wang Manufacturing and Selling Counterfeit SANOFI Drugs in Shijiazhuang City, Hebei Province

Nominated Agency: Hebei Provincial Public Security Bureau Investigation Team Hebei Provincial Food & Drug Administration

Inspection Bureau

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51��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Case Description

On Apr 28th, 2014, Shangyu AIC took administrative raid action against a firefighting equipment entity in Shangyu (the target entity) resulting in the seizure of 129 units of water dividers, 797 units of Valves and 5 sets of molds. All seizures are bearing counterfeit UL trademark. In the meantime, investigation revealed that some �������������� ���&��[��*������+��������� ������� ������+� �*�X���������&� �*+�"���&��overseas. This information was immediately reported to Ningbo Customs. On May 4th, through Customs’ risk ��� ����� *��������# ������ ������������ ���&��[�������� � ������[�� �/�:+�X����� �������and detained for investigation. On Aug 17th, Shangyu AIC transferred this case to Shangyu PSB for criminal investigation. Shangyu PSB thereafter visited Ningbo Customs, the target entity’s clients and UL for collecting evidence. In the meantime, Shangyu PSB passed information of an entity in Yuyao City that obtained during the investigation, which was suspected of producing counterfeit UL trademark product to Yuyao PSB.

Recommendation Reasons

�/?<� ��������������������� ���&��[��$��$*�� �*���������� &�#& ���������+� ���������������is in compliance with UL safety requirements. Such misleading may pose serious threats to the safety of life and property of the public. In this case, each enforcement authority handled the case in professional manner. They � &��#������������������ ���&��[��$��$*�� �*������������ �* ��� �����&&��� ������&��������� ���#protected the safety of life and property of the public.

(2) The successful of this case is mainly due to the effective cooperation of different enforcement agencies to +� ��������� �������� ��<� ��� �������:�������&����*��� �� � ��#� ��������������X�&���of demonstrating that different enforcement agencies cooperate together and handle the case in holistic manner, which is AIC transferred the case to PSB, PSB visited Ningbo Customs and different locations for collecting evidence, then PSB transferred the case to People’s Procuratorate for prosecution, in addition, to transfer the case lead to another district PSB for initiating another criminal investigation and prosecution. This case is a successful model case for demonstrating the case bridging administrative and judicial IP Enforcement.

Results

_�x�*9��������*#����$������������ ���� *�� ���������|x������������*#���������� ��measure since Sep 3rd. On Nov 5th, Shangyu PSB transferred the case to Shangyu People’s Procuratorate for ������� ��� |�#��������� ������ �����������$������������ ���� *�� �������9/������� ���suspect under coercive measure on Dec 10th. On Mar 12th, 2015, Yuyao PSB transferred the case to Yuyao People’s Procuratorate for prosecution.

Mr. YAN in Zhejiang Province counterfeiting registered trademark of UL LLC��& �����x*���#{����*#�� �� ��x�& � ���� ��������[�������� ��������������X �*��� � ��� �#��=��' ��*���� ���

�����*#�x%"?�� �*+�"���&�����*#�� �� ����+� ������ �#������������X �*��� � ��� �#��=��' ��*

Province (Shangyu PSB), Yuyao Municipal Public Security Bureau of Zhejiang Province (Yuyao PSB)

Nominating Member Company: UL LLC (UL)

53��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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Description

In early 2014, the right owner discovered that Ye, etc, rampantly work on manufacturing counterfeiting panel switches, socket products with registered trademark aforementioned, and distributed to many places �������X������ �������������� ��<� ��� ������ � &��#�������� �� ���^��!������}����& �and Technology Branch. The key link of crime chain of counterfeiting registered trademark has been cracked ��&������#+#����������� ����������� ���������� �����$� �������& ~$� ����������� !���This case was selected as one of the ten typical case of intellectual property infringement crime in 2014 by the Ministry of Public Security.

Recommendation Reasons

1. The products involved in the case is special, which refer to people’s livelihood and the security of the �� ���� �������� � �#����&�� ���&����� �������&���� ������� ��*���� ��&�[��*���� ������������society.

2. In the case, Wenzhou PSB has effectively and timely detected the criminal activities and seized the favorable opportunity to crack the counterfeiting den, which effectively prevent the counterfeiting products from ��� �* ��������������������� ���#���������� ��� ���������������+#���'�� � ��&����

3. Wenzhou, Zhejiang province, is the gathering place of the low voltage electrical industry in the country, the criminal offender, involving the defendant in the case could easily obtained various of the required molds, &��� �����������X � ��#&���� ����&��������� �*��������� � �* ��������*������� �����������<�����will validly deter other illegal producer and contributes to regulate the development and innovation of the local low voltage electrical industry.

Case of Wenzhou Ye, etc, Counterfeiting Registered Trademark “““““ ”, etc

Nominated Agency: Economic and Technical Development District Branch of Zhejiang Wenzhou Public Security Bureau

Nominating Member Company: Schneider Electric (China) Co., Ltd.

55��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

56

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Case Description

� �����#9�/@������� ���*�����$�����*�������+���+�# �*��������� �*+��[��+� ��� �*� � �����[�Shell trademarked drums and distributing such counterfeit goods for sales, under the name of Shanghai LIAN |%�q��+� ����"��������������*�� ���%���+� ����<�������*#"������� ����*X ��� �� ������*�� �<��sales turnover of a variety of counterfeit lubricant brands including Shell was valued at RMB 572 100. On March 9��9�/:���������� � �� !���������������� �������� ����� �*����&��$� �����[�������#����� �� �together with fake packaging, during Police raid against the manufacturing site. A total of 10 suspects including the principal YU were criminally detained, while a counterfeit network comprising 8 companies and private businesses ��������[�������^ �� ��������������������������*X ��� ���������������������� � ����*� �� ���defendants with Minhang Dist. People’s Court in October. One month later, the court rendered a decision on all the suspects involved in counterfeit manufacturing and sales.

Recommendation Reasons

1. Malicious circumstances and grave consequencesThe principal YU masterminded the criminal activity under the cover of legally registered companies, which

&��� �� ������ �$����#�����*�������&+������� &��<�����������&� ���������[�+��������+� ����within nearly one year do great harm to rights and interests of consumers and right holders.

2. To solve the case, the Police combed through and linked various evidentiary threads together. It is particularly worth noting that the leads totally originated from day-to-day intelligence collection of PSB authorities. <����� ����� �#� ����X�&�����������������&�������+� ������ �#�� &���������� ��&��� ���detective work during enforcement campaign on Intellectual Property rights protection.

3. Widespread media attention from home and aboard:http://legal.people.com.cn/n/2014/0919/c42510-25697551.htmlhttp://newspaper.jfdaily.com/shfzb/html/2014-05/07/content_34323.htmlhttp://sh.people.com.cn/n/2014/0506/c134768-21149966.htmlhttp://sh.sina.com.cn/news/b/2014-05-07/103393950.html http://www.chinanews.com/fz/2014/05-07/6141512.html4. The case has been selected by the Department of Public Security as 10 major cases of Intellectual Property

rights protection in 2014.

Results

|��@#������ & ��� &�� ��&���������������]#��������+�� �������]�����$��������#>^x�q�/#������ & ��� &�� ��&���������������/�&���������+�� �������/����$��>|x�q�/#������ & ��� &�� ��&���������������/#��������+�� �������/����$��>"�}�q�/#������ & ��� &�� ��&���������������/#��������+�� �������/����$��>�x_�/�&������� & ��� &�� ��&���������������/�&���������+�� ������������$��>|��/�&������� & ��� &�� ��&���������������/�&���������+�� ������������$��>^x�q�/]&������� & ��� &�� ��&���������������/]&���������+�� ������������$��������#>����/:&������� & ��� &�� ��&���������������/:&���������+�� ������������$��>^��/#������ & ��� &�� ��&���������������/#��������+�� �������]����$��>������/#������ & ��� &�� ��&���������������/#��������+�� �������:]���$���

Criminal Group Led by YU Counterfeiting Shell Registered Mark

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Nominating Member Company: Shell Brands International AG

57��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

58

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Case Description

������ �����&������+ ������&�������+#�����*� ������$�+#������ �*�������* �*&�&+��registration. For making more money, Xu encouraged the members to upload the pirated Microsoft software products for the registered members which amounted to more than 20000. Upon complaints, Anhui Quanjiao PSB started the criminal investigation on Xu and the updaters Liu, Zhou, Su, Guo, and Ding, who were indicted by the x��� ����' ������������_�$��������������#� *�� ��� �*�&���������//�9�/:�

Recommendation Reasons

1. One of the Top 10 major cases in the Sword towards the Internet Action 2014, jointly initiated by National "��#� *��x�& � ���� ������ ����%�������%����&�� ��_�$���� � ��#��%�����#���%����&�� ��<�������*#����the Ministry of Public Security. Case processing was under the supervision of the Ministry of Public Security and Shandong Public Security Department.

2. Breakthroughs: 1) contributory infringers (e.g. the operators of the forums) were held subject to criminal � �+ � �# ����#����[������*������ ��� �*�&����������#���� ���� ��� �*��>9?�����&+��������&���+ ��members were admitted by the court as one of the thresholds for conviction.

3. The principle defendant was sentenced to imprison for 3 years without probation.

Results

x��� ����' ���������"��������������'��*&����������&+��/����_���+����9�/:�$�� �*��� X���������*� ��#������*����������������� &�� �����@�]#������$�����/]�`�� ��� &�� �����@#���� ���:~#������+�� �����$�����/9�`�=����� &�� �����@#���� ���]~#������+�� �����$�����/9]`����� &�� �����@#���� ���:~#������+�� �����$�����/��`�q���� &�� �����@#���� ���@~#������+�� �����$�������`����� �*�� &�� �����/#���� ���/~#������+�� �����$�����]�`�<�� X���������� �����������

www.rin9.com Copyright Infringement Cases

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Nominating Member Company: Microsoft Corporation

59��������� �������QUALITY BRANDS PROTECTION COMMITTEE OF CHINA

ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

QUALITY BRANDS PROTECTION COMMITTEE OF CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT

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